Itochu Takes Aston’s 2.75% Shares and Enters Maules Creek Coal Project

Itochu Corporation, Japanese general trading house, announced on Monday the firm’s Australian subsidiary, IMEA has basically agreed with Aston Resources, a coal miner of Australia, in IMEA’s acquisition of Aston’s 2.75% shares at A$ 33 million (approximately 2.6 billion yen) as a cornerstone investor. Itochu decided this investment when Aston plans initial public offering. Itochu will acquire equity in a coal mine under Aston’s feasibility study and earn an exclusive right to negotiate with Aston on coal sales right.

Aston holds 100% shares in Maules Creek coal project in New South Wales, Australia. The mining area under feasibility study is expected to reserve approximately 610 million tonnes of coal, largest volume in the country. Aston plans to invest A$ 463 million for the development and to start production of high grade thermal coal and soft coking coal at approximately 10.8 million tonnes per year in 2012.

Itochu aims to gain several ten percentage shares in Maules Creek project through negotiation with Aston. The companies also talk on coal selling right. Itochu considers supply of Maules Creek’s coal not only to Japanese customers but to users in other countries and areas.

Aston was established in January 2008. The company has no experience of coal mine operation and coal sales. Aston expects for Itochu’s sales network and know-how. Aston has submitted listing prospectus at the end of last week. Aston is expected to be listed on August 16 or 17 and Itochu’s investment will complete.

Itochu presently holds equities in Australian 6 coal mines though the firm recently sold equity in Foxleigh coal mine to Nippon Steel. Maules Creek will become the seventh investing mine. Itochu plans to expand its coal equity to total 20 million tonnes per year including Indonesia by 2015 from current 9 million tonnes.